Supply disruption still dampening production

UK car production fell 19.2% in the first six months of the year, although June marked a second consecutive month of growth.

According to the Society of Motor Manufacturers and Traders (SMMT), 403,131 units were built in the first half of the year, down 95,792 on the same period in 2021.

However, production rose by 5.6% to 72,946 units in June. This was driven by a record month for electric vehicle production. Output rose 44.2%, with 32,282 EVs produced in the first six months overall.

Meanwhile, UK commercial vehicle (CV) production grew 64.4% in June to 9,549 units, representing a 32.7% increase on the pre-pandemic average.

Mike Hawes, SMMT Chief Executive, said: “Car manufacturers have been suffering from a ‘long Covid’ for much of 2022, as global component shortages undermine production and put supply chains under extreme pressure. Key model changeovers and the closure of a major plant last year have also impacted output, but there are grounds for optimism with rising output over the last two months.

“As these issues recede over the next year or two, investment in new technologies and processes will be essential but this will depend on our underlying competitiveness. Sky-high energy costs, non-competitive business rates and skills shortages must all be addressed if we are to build on our inherent strengths and seize the opportunities presented by the dash for decarbonised mobility.